S&P pares PLDT

S&P said it lowered its ratings on PLDT Inc. and its senior unsecured notes to BBB from BBB+.

“PLDT Inc.'s persistently high capital expenditure (capex) will continue to weigh on its balance sheet. The Philippines-based telecom company also anticipates its incremental borrowings in 2023 could increase by up to Philippine peso (PHP) 19 billion, which we understand is the worst-case scenario,” S&P said in a press release.

The agency said PLDT's adjusted debt-to-EBITDA ratio will no longer be appropriate for a BBB+ rating. “We forecast the ratio will weaken to 2.8x-3x in 2023, 2.6x-2.8x in 2024, and remain above 2.5x in 2025, despite rising earnings.”

The outlook is stable.

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